Bonds Will Back Airport Expansion

October 25, 1985|By John Wark of The Sentinel Staff

Bowing to requests by several prospering airlines for more space, officials of Orlando International Airport have agreed to a bond issue of $7 million to $20 million to finance the expansion of gate areas.

The expansion will add arrival-departure gates and passenger-waiting space to one of the airport's two satellite terminals. Jerry McMichael, director of finance for the Greater Orlando Aviation Authority, said the size of the expansion and the bond issue will depend on the number of airlines that agree to back the financing.

The expansion now envisioned would benefit Florida Express, the only locally based airline at Orlando International, as well as Piedmont Airlines and Continental Airlines.

Delta and Republic airlines also have expressed an interest in expanding their leased space at the airport, McMichael said.

Florida Express, which started service in January 1984, has grown quickly to become the third-largest passenger carrier at the airport, behind Eastern and Delta. On Thursday it reported that profit for the fiscal quarter ended Sept. 30 was $1.1 million, or 22 cents a share, compared with a loss of $541,000, or 21 cents a share, in the same quarter last year. Revenue totaled $13.9 million, up from $5.4 million a year ago.

Two weeks ago North Carolina-based Piedmont announced that in January it will double of the number of its Orlando flights. Texas-based Continental Airlines, which greatly reduced service after filing in September 1983 for protection under Chapter 11 of the federal bankruptcy code, has come back stronger than ever in the past year.

Airport officials hope to begin the expansion by December.

On the advice of its staff, the authority's board voted Wednesday to handle the latest bond sale without an underwriter.

Instead, the bonds will be sold by competitive bid, with the issue going to the company offering the lowest interest rate. The Nov. 20 sale will be handled by the authority's consultants and attorneys. Financial Management Inc. of Philadelphia, the authority's bond consultant, will earn a fee of about $40,000; Mudge, Rose, Guthrie, Alexander & Ferdon, the authority's bond council, will get $7,000 to $20,000, or $1 for every $1,000 in bonds issued.